YOUR COMPANY IS LOOKING FOR COMMERCIAL FINANCING!
WORKING CAPITAL LOANS FOR SMALL BUSINESS CAPITAL NEEDS IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today.
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Working capital sources in Canada often seem hard to come by for Canadian business owners and financial managers. And you don't need a ' black box' to locate the key information you need around commercial lenders, offering quite frankly a dizzying array of financial solutions to the cash flow challenges your business faces. Business funding can come from short term and long term solutions. Let's dig in.
LET YOUR BALANCE SHEET IDENTIFY WORKING CAPITAL NEEDS
Your firm's need for cash flow and working capital solutions will almost always be evident from your balance sheet. But can the business get approved for, and in fact, support the type of finance solutions that revolve around working capital?
GROWING BUSINESSES CONSUME CASH!
A growing business (much more than a start-up or a company with fairly flat revenues year over year) eats cash. That's because the day to day needs of fixed asset obligations and the continual need to build up inventory and receivables due to the sales growth is a massive consumer of cash.
SALES GROWTH REQUIRES HIGHER INVESTMENTS IN CURRENT ASSETS SUCH AS A/R AND INVENTORY
Some concepts are difficult to explain to clients who are more focused on sales growth, profits, etc - which by the way are all good things. A simple way we explain it sometimes is that the whole situation around ' working capital' revolves around understanding what your customers owe you and your total current ongoing investment in A/R and inventories.
You might have some positive cash on hand, and you ' might' have access to revolving credit facilities, but at the end of the day, those balance sheet accounts are going to dictate the ' cash flow' situation. Theirs a whole handful of ' cash flow' definitions but we'll get into that some other time! Business loans via term loans can inject permanent working capital into your business. Revolving credit lines of course allow you to pay interest only on what funds you have drawn down.
CASH FLOW NEEDS VARY BY INDUSTRY
Every company is naturally different, a tech firm specializing in software solutions in fact does not need to worry about ‘inventory ', while a retailer's total business revolves around financing the inventory component of their business. A wholesale distributor might have great sales, profits, but be cash-strapped because they have demand for more orders and no cash because clients won't be paying them in another 60-90 days - and we won't even get into seasonality and bulges in business!
The good news is that your business has access to working capital financing within banking solutions, and outside Canadian chartered bank solutions. Those include:
A/R Financing / Accounts Receivable Factoring/ Confidential Receivable Financing
Inventory Loans
Access to Canadian bank credit/line of credit facilities
Non bank asset based lines of credit
SR&ED Tax credit financing
Equipment / fixed asset financing
Cash flow loans
Royalty finance solutions
Purchase Order Financing
Short Term Working Capital Loan / Merchant Cash Advance - a good personal credit score by owner/owners required and these solutions come with a higher rate but are easily accessible
Securitization
SHORT TERM FINANCE SOLUTIONS
It's critical to think of this type of financing as short term, and commercial lenders in Canada will always be a bit more, or a lot more expensive than the low cost financing we associate with our banks. In many cases, the finance solutions are very specifically structured to the type of business situation your firm finds itself in.
ASSET BASED LENDING SOLUTIONS
While commercial lenders can't compete on price, they definitely compete on the solutions you need to secure asset financing. Focus on need, opportunity to grow, and cost and structure when looking at working capital sources you require operating and growing. Even real estate finance needs can be addressed by funding solutions such as a bridge loan.
CONCLUSION
Small business owners are always looking for a short term working capital business loan solution, so consider seeking out a trusted, credible and experienced Canadian business financing advisor to in effect become your ' black box' for critical info on finance solutions in Canada.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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